A growing digital ad market is benefiting giants like Meta and smaller players like Reddit
Summary
Reddit on Wednesday reported fourth-quarter revenue of $428 million, which was up 71% from the previous year and represents the fastest growth rate for any quarter since 2022. Although Reddits shares tumbled on weaker-than-expected user numbers, the companys growing sales indicate a particularly healthy digital ad market, said Jeremy Goldman, a senior director at Emarketer. Investors typically look to the financial performance of tech giants like Meta , Alphabet and Amazon for a view of the ad markets overall health, Goldman said. That Reddits sales grew significantly alongside the bigger players shows that advertisers feel optimistic enough to "diversify to a platform thats more nascent, like Reddit, and say Were willing to throw some dollars at this thing that dont really understand," Goldman said. Media and advertising executives told CNBC in December that they were optimistic about the market and said that ad spending increased in the fourth quarter.